<img src="https://secure.leadforensics.com/29321.png" style="display:none;">

HOW WE HELP Compliance TEAMS

Recommended Blogs

How to communicate compliantly with an ageing population
September’s Regulation Round-up, a monthly update from the Financial Conduct Authority, has as its hot topic on how to communicate compliantly with an ageing population. For some time now, the regulator has been concerned about the changing demographic – the growth in the number of older people and...
Make your FCA visit a success: why working with Marketing is key
So the Financial Conduct Authority has announced that it plans to visit your firm. We’re willing to bet that your Marketing team aren’t the first people you think of when it comes to preparation. But they can be vital to success. Here we outline the 6 reasons why. Why is the Financial Conduct...
How to write Compliance-ready content first time
  This stressful scenario is only-too familiar… You desperately need to get out that last-minute financial promotion You’re up against the clock – but you’ve drafted some content that’s been signed off by the business You’re nearly there…and then Compliance steps in And their amendments mean it’s...

What are the best and worst banks for customer complaints?

Steve Coleman

shutterstock_589715486-2.jpg

This week, consumer magazine Which published research showing which financial brands deal best with customer complaints.

We look at the results here, and identify the steps you can take to reduce – and better tackle – customer problems.

Which financial brands deal with complaints best?

According to the Which research, Saga, Nationwide and Tesco are the best financial brands for dealing with complaints. These results came from a combination of Which’s own customer satisfaction scores and data from the Financial Conduct Authority (FCA) and the Financial Ombudsman Service (FOS), all covering the second half of 2016.

What is the likelihood that problems are handled successfully?

Almost two-thirds (61%) of complaints to financial companies were found to be successful. In other words, the complainant got the outcome they wanted.

This varies widely from firm to firm, though. The lowest success rate reported was just 2% – with 94% the highest.

The table below shows the results of the Which research. A high score equals a good complaints record; a low score means a brand received a high volume of complaints.

The version on their website is interactive – you can search for specific firms and reorder the columns to see how your firm performs.

Which Magazine

Source: Which

How many complaints are upheld?

On average, there is a 61% chance of a complaint to a bank or insurer going in the consumer’s favour.

But this rate varies significantly. Of complaints to Danske Bank, only 18% are successful, compared to 77% at Lloyds. 

When issues are escalated to the Financial Ombudsman Service (FOS), similar variations are seen.

Overall, 36% of all complaints to the FOS result in a decision in favour of the consumer – but this ranges from 72% against Aviva to just 4% against Coventry Building Society.

The latest FCA data, published in April, shows that 60% of complaints made to the financial regulator were upheld.

 What do consumers complain about?

The FCA data, which we wrote about in detail when it was released, showed that:

  • PPI remains the most complained-about product (895,110 complaints)
  • Current accounts received c. 514,000
  • Credit cards received approximately 313,000
  • Motor and transport insurance received over 220,000
  • Packaged back accounts – which were subject to a regulatory thematic review in 2016 – were complained about by 172,000 people

General administration and customer service issues cause 40% of all grievances. ‘Advising, selling and arranging’ comes close second, accounting for 39%.

How can you improve customer satisfaction?

Our Compliance Guide to Financial Promotions has more advice and guidance on producing compliant financial promotions and communications.  

It includes information on:

  1. 1. What constitutes a financial promotion?

  2. 2. What is a ‘real time” or “non-real time” financial promotion’ and how do they differ?

  3. 3. Why are financial promotions so heavily regulated?

  4. 4. Is social media a viable medium?

  5. 5. Financial promotions policy standards

  6. 6. Training and competency requirements

  7. 7. Management information

  8. 8. Record retention

  9. 9. Specialist areas

You can download a free copy of the Compliance Guide here.

Compliance Guide to Financial Promotions

Topics: Compliance

Subscribe to our weekly blog

Tips and best practice for Compliance teams, along with the latest news and views.

  • 2017-10-13 13:22:46 The new IDD – how can automation help you comply?

     UK firms will need to comply with the Insurance Distribution Directive (IDD) from 23 February 2018. Here we examine what it means for Compliance teams, what you need to do to meet its requirements –...

    Learn More
  • 2017-10-06 14:27:59 What are the best and worst banks for customer complaints?

     This week, consumer magazine Which published research showing which financial brands deal best with customer complaints. We look at the results here, and identify the steps you can take to reduce –...

    Learn More
  • 2017-09-29 13:07:33 What happens to firms who don't meet the MiFID II deadline?

     This week, in a speech, FCA enforcement and market oversight executive director Mark Steward set out the regulator’s approach to enforcing the MiFID II regulations when they come into play next...

    Learn More